Chapter 2-4 LearnSmart
Since most firms find attractive opportunities for their products fairly close to existing markets, what opportunity do marketing strategies typically pursue first?
Market penetration
The marketing department at Henri's company is taking the next two weeks to measure and analyze their current marketing performance. The company will use the results of this analysis to adjust any areas and improve their current effectiveness. What is Henri's company engaging in?
Marketing analytics
Which four of the following are basic market/competitive situations a company might face? (Check all that apply.)
Monopolistic competition Monopoly Oligopoly Pure competition
The market segmentation process consists of which of the following? (Check all that apply.)
Naming broad product markets Segmenting broad product markets into select target markets
Which of the following statements about marketing strategy are true? (Check all that apply.)
Strategies include identifying both a target market and a marketing mix. The needs of the target market should drive decisions on the marketing mix.
Which of the following statements about Generation Y are true
They are health conscious. They are relatively comfortable with technology.
Promotion is concerned with which of the following within the marketing mix? (Check all that apply.)
Number of Salespeople Contests
As a marketer, it is usually safer to try to satisfy the needs of a
small group of customers very well
Generation X is ______ in number than the baby boom generation
smaller
There are state and city laws regulating _____
starting up a business the setting of prices
The marketing _______ should be evaluated against the company's objectives
strategies
Which of the following are true about the price area of the marketing mix? (Check all that apply.)
-price includes an evaluation of delivery costs - price includes decisions about discounts - as part of price, marketing managers estimate how customers will react to changes in price
Trina's Bakery had 600 customers last year and this year, 400 of those customers still patronize the bakery. What is the retention rate at Trina's Bakery?
66%
A marketing plan is
A document that describes a marketing strategy and various steps and elements involved in carrying out the strategy
Susan is a first-time home buyer. She wants to keep her monthly mortgage payments as low as possible. Which of the following would work in her favor?
A low interest rate
Which of the following are true of market segmentation? (Check all that apply.)
A major reason for market segmentation is to help a manager truly understand customers. Managers use segmentation to help them figure out which groups of customers to serve.
Which of the following statements regarding marketing managers and potential competitors is true?
A marketing manager should research and seek information about competitors
Which of these statements regarding population trends is accurate?
About 80% of U.S. residents live in urban areas.
Carrie walks into her kitchen every morning and speaks to a device on her counter, "Alexa, what's the weather today?" The device she is interacting with is based on what technology?
Al
Which of the following is true concerning the importance of the Four Ps?
All are equally important
Product is concerned with which of the following in the marketing mix? (Check all that apply.)
Branding Installation Service
Which of the following helps companies create marketing strategies that are difficult to replicate and have long-term profit potential?
Breakthrough opportunities
Which of the following groups is responsible for establishing and enforcing safety standards in the United States?
Consumer Product Safety Commission
The number of purchases a person could make from a firm during the course of their relationship is called the
Customer Lifetime Value
Which of the following are qualities of "good" market segments? (Check all that apply.)
Customers within a market segment have similar characteristics and responses to marketing mix variables. The market segment is broad enough to be profitable for the firm. The dimensions used to define the marketing segment help identify potential customers and effective marketing mix variables. Customers in different market segments have significant differences in characteristics and responses to marketing mix variables.
Cultural differences that may complicate the segmenting process include which of the following?
Customs Race Religion
Which of the following are general categories of segmenting dimensions in consumer markets?
Demographic Behavioral Geographic
Which of the following might be revealed by clustering techniques?
Demographic characteristics Past buying behavior Attitudes toward the product
What are the four broad areas of opportunity a company can pursue in the marketing strategy planning process? (Check all that apply.)
Diversification Market penetration Product development Market development
Which of the following statements about the Four Ps is true?
Each of the Four Ps contributes to a whole marketing strategy
Which three of the following are considered elements of the economic environment?
Economic growth rates Inflation rates National income
True or false: Generic markets focus primarily on product type.
False
True or false: The determining dimension helps marketers to understand the "core benefits" required by consumers in a product-market.
False
The people born between 1965 to 1977 are referred to as
Generation X
The people born from 1978 to 1994, who are sometimes called Millennials, are referred to as
Generation Y
The people born after 1995 are referred to as
Generation Z
Which of the following groups are considered "digital natives"?
Generation Z
Jenna's company exports tea to various markets around the world. In the past six months, the company has focused on developing new flavors and was surprised to learn that a competitor gained market share by expanding into four new foreign countries. Which part of a product-market did Jenna's company fail to take into account?
Geographic area
Which of the following are marketing processes used by combiners?
Grouping similar customers across multiple submarkets into a single target market Developing a marketing mix that appeals fairly well to customers across multiple submarkets
What is the best way to describe a targeted market segment?
Homogeneous
Which of the following activities are part of the basic approach to competitor analysis?
Identify existing and potential competitors. Understand how your marketing mix compares to your competitors' offerings and strategy. Evaluate the strengths and weaknesses of your target market and marketing mix.
Garrett knows what the company plans to do for its marketing efforts and now needs to find a way to put those plans into operation. What phase of the marketing plan is Garrett working on
Implementation
Why does the marketing strategy process start broad before narrowing?
It gives firms a chance to identify opportunities they might miss if the process starts too narrow
Which of the following are true of a successful product-market? (Check all that apply.)
It helps focus and sharpen a firm's marketing strategy. It is defined as the scope of the market in which a firm will compete.
Which two of the following describe a marketing program? (Check all that apply.)
It includes more than one marketing strategy and implements several marketing strategies at once
Which two of the following statements about international markets are true?
It is often difficult to gain a full understanding of the market environment variables. It can be challenging to anticipate potential business risks.
What is the primary disadvantage of the production-oriented marketing approach?
It leads to missed opportunities by ignoring customers.
Which of these companies is being affected by literacy?
Kimball's Kroutons added pictures of ingredients to its packaging being sold in Ethiopia for consumers who could not read a list of ingredients.
Which of the following variables contribute to the cultural and social environment?
Language Religious beliefs Education level Clothing styles
Which of the following is not part of a complete product-market definition?
Organization type
People of what age range are considered senior citizens in the United States?
Over 65
Which of the following are examples of "product" strategy decisions? (Check all that apply.)
Packaging Installation Branding Instructions
What is the purpose of a S.W.O.T. analysis?
Picks out a firm's weak and strong points, as well as any potential opportunities or threats the firm might face
Which of the Four P's is focused on all the decisions needed to get the right product to the target market via retail stores or online stores?
Place
To clear out some slow-selling pink sofas, Furniture Warehouse offered $100 discounts. The furniture store made this decision based on the _______ component of the marketing mix.
Price
Which of the following are part of the "marketing mix"? (Check all that apply.)
Product Promotion
Which of the following statements about a product are true? (Check all that apply.)
Product can involve a physical good Product can involve a blend of physical good and service
Which of the following is not considered a possible segmenting dimension for consumer markets?
Production facilities
Which of the following is focused on informing people about the features of the product?
Promotion
What type of segmenting dimensions involves whether a customer can be considered part of a product-market?
Qualifying
How common are monopoly situations in market-directed economies?
Relatively rare
What are three components of the promotion element? (Check all that apply.)
Sales promotion Personal selling Mass selling
Which of the following steps is commonly added to the segmentation process by international firms?
Segment by country or region
Which of the following help marketers focus on a specific target market and provide superior value?
Segmentation CRM Cluster analysis
Which of the following are ethical issues that may arise when selecting segmenting dimensions?
Targeting the disadvantaged with expensive goods Marketing infant formula to less-developed countries Marketing unhealthy foods to kids
Which of the following is an example of change in the economic environment that can affect a company's marketing strategy?
The collapse of the U.S. housing market in 2008
Which of the following are true about the specific qualitative and quantitative screening criteria marketing managers develop? (Check all that apply.)
The firm's objectives and available resources help determine the appropriate criteria to use. These criteria are useful in figuring out the markets in which a firm wants to compete.
Select all that apply Which of the following statements about the marketing strategy planning process are true? (Check all that apply.) The marketing strategy process starts broadly and then narrows down. A marketing strategy begins with an evaluation of customers, competitors, and company. The marketing strategy process should start with a specific marketing strategy. A marketing strategy should begin with the identification of really different strategies.
The marketing strategy process starts broadly and then narrows down. A marketing strategy begins with an evaluation of customers, competitors, and company.
Which of the following statements about the marketing strategy planning process are true? (Check all that apply.)
The marketing strategy process starts broadly and then narrows down. A marketing strategy begins with an evaluation of customers, competitors, and company.
Which of the following factors do marketing managers consider when evaluating the industry attractiveness dimension of a product-market plan? (Check all that apply.)
The potential environmental impact of the plan Market size and rate of growth The types and amount of competition in the industry
Which of the following regions in the United States are currently experiencing the highest rates of population growth?
The southeast The west
Which two of the following factors are part of the competitive environment for a fast food chain?
The types of restaurants in the market The number of restaurants in the market
Which of the following do production-oriented managers do?
They miss opportunities by ignoring the market. They focus on the products they sell.
With regard to the target market, which of the following must marketing-oriented managers do?
They must focus on specific target markets.
A S.W.O.T. analysis helps a company figure out which four of the following? (Check all that apply.)
Threats Strengths Weaknesses Opportunities
Which of the following is the intended goal of focusing on a specific target market?
To offer superior value to the target market
True or false: Some firms find that it costs them less to retain a customer than trying to acquire a new one
True
True or false: When customers make online purchases, a company has access to data that can be used for marketing analytics
True
True or false: When customers make online purchases, a company has access to data that can be used for marketing analytics.
True
Choose the statements about differentiation that are true. (Check all that apply.)
True differentiation occurs when customers see the firm's offering as being better with regard to all four Ps. Differentiation can only occur if one or more of the four Ps is done better than the competition. Offering a lower price than the competition—while being similar on the other three Ps—would be a source of differentiation.
Under English and U.S. common law systems, a seller is required to do which three of these things?
Uphold contracts Tell the truth Stand behind the firm's product
The relevant market that a firm has for finding opportunities should be _____ the firm's present product-market
bigger than
Since broad product-markets can have many submarkets, target marketers have ______.
a choice among many possible target markets
A company has ______ when the target market prefers the company's marketing mix over a competitor's mix.
a competitive advantage
Management officials at Grace's Granola Corp. were found guilty of using low-cost artificial ingredients while claiming to use completely natural ingredients. This was considered a criminal offense. What type of legal action could a judge impose on these managers?
a jail sentence
What are a company's three potential paths for growth based on the customer equity approach? (Check all that apply.)
acquiring new customers enhancing customer value retaining current customers
Target marketing classifies a marketing mix as
appealing to a selected group of people.
To use technology in the best possible way, marketing managers must
begin with customer needs
To achieve effective market segmentation, markets should first disaggregate the needs of customers. This means the company should
break apart all possible needs into some generic markets
Companies rely on opportunities to develop marketing strategies that are difficult to replicate and have the potential to make the company a lot of money for a long time.
breakthrough
Terms such as generic market and product-market are examples of ______ market definitions that can be useful to firms searching for opportunities
broad
Greg told the management team that the ideal consumer for the product is a 27-36 year old working mother living in the Midwest. This fictional description of a customer is called a(n)
buyer persona
A major difference between the economic environment and the cultural and social environment is that the economic environment
changes rapidly
Margo's company plans to reposition the high-end trail bike it introduced last year. This will involve
changing customer perceptions
Trying to increase the size of their markets by putting two or more segments together is a typical practice performed by
combiners
Aliza is the marketing manager at SinoSure Foods, an Asian food company. She has been going to stores to check out new products on the shelves by the SinoSure goods. She is actively seeking out information about current and potential
competition
When marketing managers analyze similar businesses and their strategies, they are considering the ______ environment.
competitive
In competitive analysis, marketing managers attempt to identify those firms whose products and marketing mix are the most similar, these firms are known as
competitive rivals
Marketing managers focus their competitive analysis on ______, firms that offer similar products and marketing mixes
competitive rivals
The first step in competitor analysis is to identify potential
competitors
The ____ ____ ____ Act set up the Consumer Protection Commission.
consumer product safety
Businesses and individual managers are subject to both ___and ___ laws.
criminal and civil
In international marketing, ______ differences such as language and customs can complicate segmentation efforts.
cultural
The various ways in which people live, including their motivations and behaviors, are part of the ______ environment.
cultural and social
When a company is working to achieve market penetration, it is attempting to increase sales of its _____ products in its _____ markets.
current; present
A marketing manager attempting to segment a market using two demographic characteristics is likely to fail because
customer behavior cannot be explained using such narrow segmenting criteria
The CRM process relies on a ______ for information
customer database
Companies predict how many purchases a single customer might make from the company over the length of the relationship with that consumer, a measurement called the
customer lifetime value
A company typically bases a buyer persona on
customer research
When a company decides to reposition a product, it is doing so in response to
customers who do not view the product in the desired way
A regional population ______ typically creates stronger competition among firms in the area.
decline
In pure competition, where competitors offer similar products, over time, profit margins generally
decline
The term "mass marketer" is used to
describe large firms that aim at specific groups.
As noted in the text, when the Chicago South Loop Hotel offered free parking to encourage customers to choose its hotel over others, it was relying on a ______ dimension to attract customers
determining
A company is attempting to achieve market when it works to increase sales by selling its current products in new markets.
development
The marketing manager reminded the team that they had to come up with something that would set them apart from their competitor. In other words, their marketing mix needed
differentiation
When a marketing mix has an element that sets it apart from those of the competition, it is said to have
differentiation
The Chicago South Loop Hotel wants to address customers' concern about parking costs by offering free parking. This is an example of a determining
dimension
Customers and competitors are within the ______ market environment and must be considered during marketing strategy planning
direct
Moving into a new line of business, such as a new product or market, is known as
diversification
The broad possibilities available in the market strategy planning process include market development, market penetration, product development, and
diversification
When a company begins working in a brand new market or with new products, it is engaged in
diversification
Marketing plans are put into action during
implementation
Macro-economic factors that influence consumer spending, including rates of inflation and economic growth, are part of the ______ environment
economic
The ____ environment changes more rapidly than the cultural and social environment
economic
The collapse of the U.S. housing market in 2008 was an example of a rapid change in the ______ environment
economic
A company's customer is what the company can expect to earn from its current and potential customers during a particular period
equity
A company's customer is what the company can expect to earn from its current and potential customers during a particular period.
equity
Marketing unhealthy snack foods to kids is considered a(n) ______ issue that may arise during the segmenting process
ethical
True or false: It is usually safer for marketers to try to satisfy many customers fairly well
false
True or false: The United States makes up nearly 50% of the total world population
false
True or false: Within a broad product-market, there is only one way to develop market-oriented strategies.
false
Segmenters often ______ their marketing mixes for each target market.
fine-tune
The United States, Canada, and Mexico have an agreement in which there are no restrictions on imports and exports between the three countries. This is an example of
free trade
Infant formula and diapers provide _____ benefits and satisfy a customer need.
functional
A(n) ___ market consists of customers with broadly similar needs and many different options for satisfying them.
generic
What type of market is one in which potential customers have similar, but not identical, needs and are offered various and diverse ways to satisfy those needs?
generic
A market description that does not include any product-type terms is a(n)
generic market description
If a firm decides that it will offer its products in the North American market, it has defined the ______ of its marketing strategy
geographic area
The total value of all of the goods and services produced within a country in a given year is known as
gross domestic product
The legal environment of the United States assumes that competition between numerous small businesses ______ the economy
helps
A successful segmenter can develop a customer base that is willing to pay _____ prices because the company provides products that precisely match the needs of the market.
higher
Which of the following are potential benefits to using the segmenter approach?
higher profits reduced competition greater sales
Not everyone turns an opportunity into a successful strategy. You need to have a logical process to avoid or marketing situations
hit or miss
Customer value _______ when customers perceive more benefits or lower costs
increases
The ______ dimension of a strategic planning grid helps managers determine whether a product-market plan is a good idea
industry attractiveness
Industrial products are at the___ (sensitive or insensitive?) end of the continuum of environmental sensitivity, while consumer products that are targeted toward a specific cultural variable are at the ____(sensitive or insensitive?) end of the continuum of environmental sensitivity
insensitive sensitive
The ___ rate is the cost associated with borrowing money.
interest
It is important for companies to remember that selecting a target market and developing a marketing mix are _____ activities and must be done _____.
interrelated; together
In the United States, business that try to ______ competition are thought to act against the public interest.
limit
The degree of of a population can determine the way information is delivered
literacy
In Parul's condominium community, it is illegal to sell magazines door-to-door. This is an example of a _____ law.
local
In pure competition, customers see the different available products as close substitutes. Many marketing managers compete by
lowering prices and sacrificing profits
Artificial intelligence refers to
machines that operate like humans
A(n) _____ consists of potential customers with similar needs who are willing to exchange something of value with sellers in order to receive a good or service
market
Explicitly stating that a firm will market to business customers rather than unaffiliated consumers is an important aspect of a manager's ______ since this clearly establishes the markets in which the firm will compete
market definition
Explicitly stating that a firm will market to business customers rather than unaffiliated consumers is an important aspect of a manager's ______ since this clearly establishes the markets in which the firm will compete.
market definition
Which of the following is a company engaged in when it attempts to increase sales of its current products by offering them in new markets?
market development
A group of customers with shared characteristics who are expected to have a similar response to a marketing mix is known as a
market segment.
To identify and understand different subgroups in the target market, marketing managers rely on
market segmentation
A(n)____ ____ is a written document that identifies a marketing strategy and spells out the various elements that are necessary for fulfilling that strategy. (Enter one word in each blank.)
marketing plan
An organization's ______ combines multiple marketing plans into a single, large plan
marketing program
In ______ competition, several firms offer marketing mixes that at least some customers see as different. In this situation, marketing managers try to differentiate their offerings by adjusting other aspects of the marketing mix.
monopolistic
The market for breakfast cereals includes many brands and marketing mixes that some customers see as different despite their similarities in terms of ingredients and branding. The breakfast cereal market can be described as
monopolistic competition
Which competitive market situation describes one organization having total control over a product-market?
monopoly
When segmenting an international market, a company should focus on ____ dimensions than a domestic market
more
An important requirement of the marketing strategy planning process is
narrowing down the list of opportunities to those most likely to succeed
Gross domestic product is a widely used measure of
national income
China's resistance to foreign firms is an example of
nationalism
Protecting the interest of one's country before everything else, also known as ______, can strongly affect marketing efforts for multinational firms
nationalism
The pending impact of driverless cars will allow ______ to drive longer
older people
The four basic market situations include monopoly, pure competition, monopolistic competition, and
oligopoly
Customers can perceive differences based on
only one important element of the marketing mix.
A "good" market segment should be _____ in that the segmenting dimensions should be useful for identifying customers and deciding on marketing mix variables.
operational
A successful marketing strategy pairs
opportunities with a company's resources and goals.
A weakness of positioning analysis is that it can
overlook customer-related dimensions like needs and attitudes
A company that is working to increase customer purchases of its current products in its current market is trying to achieve market
penetration
Many companies find attractive opportunities close to markets they already know. They are focused on market
penetration
Fill in the blank question. A product needs to get to the customer when and where they need it. This is considered to represent the function of the 4 Ps
place
Regional economic groupings such as the North American Free Trade Agreement are likely to promote similar ______ environments among member countries.
political
A(n) statement provides an exact picture of the firm's product offerings, target market, and differentiation strategy
positioning
How customers think about brands in a market, also known as ______, affects how marketing managers adjust the marketing mix
positioning
In order to focus a marketing mix, marketing managers might describe the firm's target market, product offerings, and differentiation strategy in a ______ statement
positioning
The way in which customers think about brands in a market is called
positioning
When targeted customers ______, the company is said to have a competitive advantage.
prefer a company's marketing mix over that of a competitor
Positioning analysis is a ______-oriented approach
product
A firm engaged in ______ is offering its current markets a new product or an improved version of a current product
product development
When a company offers a new product or an improved version of a current product in its present markets, it is engaged in
product development.
Market segmentation requires that the marketing manager decide which ______ might be useful for marketing mix planning.
product-market dimensions
Some businesses avoid using new technology because they don't understand it, while other companies immediately use every new technology without assessing its value. Both of these approaches can steer a company into a ______ way of thinking
production-oriented
The most significant factor in determining whether to segment or combine markets is
profit
Ultimately, a firm should consider ______ to determine whether to segment or combine.
profits
In the U.S. marketplace, vigorous competition is expected to ______ careful consumers.
protect
Segmenting dimensions that help marketing managers decide whether to include a customer type in a product-market are called ______ dimensions
qualifying
The "core benefits" required by all consumers in a product-market are identified by the ______ dimensions
qualifying
The process of using a customer database to refine marketing efforts is known as customer _____ management
relationship
When determining customer lifetime value, the ____ rate refers to the percentage of customers who stay with the company in comparison to the total number of customers
retention
Fifty years ago, about two-thirds of the world's population lived in ___ areas
rural
After analyzing environmental trends and the firm's resources and objectives, marketing managers should develop ______ to narrow down the number of strategic choices
screening criteria
A market ______ is a group of customers with similar needs who will have a similar response to a marketing mix.
segment
Marketers that develop a different marketing mix for each homogeneous market segment are known as
segmenters
After a computer clusters groups of people together, marketers look for
segmenting dimensions that apply to everyone in the cluster
Business-to-business markets, with very large customers, can treat customer firms individually as " ____ of one."
segments
The single target market approach involves
selecting one homogeneous market segment as a target market
In the United States, people over the age of 65 (regardless of the year they were born) are called
senior citizens
The Johnson Family restaurant, which specializes in Cajun cooking, wants to open a restaurant in another state. According to the continuum of environmental sensitivity, this type of product is considered environmentally
sensitive
Developing a _______ can help a manager identify and define the markets in which the firm wants to compete.
set of specific qualitative and quantitative criteria
Marketing managers
should seek attractive opportunities
Selecting one homogeneous market segment as the firm's target market is called the ___ target market approach.
single
The use of scientific advancements to help convert resources into goods and services is also known as
technology
When an auto manufacturer applies scientific advancements to improve the gas mileage of its vehicles and increase sales, it is taking advantage of
technology
A marketer who is analyzing demographic trends might study
the age of the population
Customer equity is
the amount of money a company can expect to earn from customers during a given time.
Which one of the following is the most important factor in determining an appropriate marketing mix?
the needs of the target market
A highly-personalized marketing approach considers each customer to be
their own individual segment
An ideal product-market description should include ______ customer dimensions plus one product type description
three
True or false: An effective marketing strategy matches opportunities to the firm's resources and objectives.
true
True or false: It is more difficult to evaluate opportunities in international markets due to the wide range of environmental variables
true
True or false: The first step in effective market segmentation should be to name a broad product-market of interest to the firm.
true
True or false: The technology associated with driverless cars may allow older adults to live on their own and slow the demand for nursing home care
true
If a customer perceives a product to have more features and a higher quality, then the customer perceives the product to have more
value, benefit, or worth
The questions that a marketer should ask in order to identify customer similarities and differences include
who what why
Conrad's company wants to understand the reason customers are choosing their competitors products over their products. Which type of question does Conrad need to answer?
why
